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Business component 2 > Strategy and implementation strategy and SWOT > Flashcards

Strategy and implementation strategy and SWOT Flashcards

1
Q

What is SWOT?

A

A diagnostic tool used to identify the internal strengths and weaknesses and the external opportunities and threats to a business.

Strength,Weaknesses,Opportunties and Threat analysis

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2
Q

What does it mean by strength?

A

Is when the business is good at something and takes advantage of it.

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3
Q

What are types of strengths for a business? (SWOT)

A

Brand reputation
Location of business
Specialise in marketing
High levels of productivity

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4
Q

What is porters five forces used for?

A

Profitability of businesses within an industry e.g. Airlines(Travel)

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5
Q

What are some weaknesses?

A

Damaged brand reputation
Bad business location
Limited product range
Bad debt or cash flow problems

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6
Q

What does it mean by opportunities?

A

This is things the business could do well in the future

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7
Q

What are some opportunities?

A

Merger
Change in technology
International trade
Gaining market share

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8
Q

What does it mean by threats?

A

Threats are problems the business could face in the future

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9
Q

What are some threats?

A

New entrants to markets
Economic slowdown/recession
Increased trade barriers

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10
Q

What does an effect SWOT analysis allow a business to do?

A

Build on strengths
Resolve weaknesses
Exploit opportunities
Avoid threats

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11
Q

What are the 5 forces of Porters model?

A

Rivalry Competition (Same product)
Buyer power
Supplier power
Threat of New entrants
Substitute (Uber,boats, Trains)

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12
Q

How does Porters five forces shape competitive strategy?

A

Looks at the impact of each force on the industry (Profitability)
Helps to minimise impacts of the forces for the benefit of the business

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13
Q

What is horizontal and vertical competition in Porters five forces?

A

Horizontal(Competitors)
New entrants
Substitute products
Intensity of rivalry products

Vertical(Suppliers and consumers)
Bargaining power of suppliers
Bargaining power of Consumers

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14
Q

What are barriers to entry and examples?

A

Barriers to entry are any factors that stop a firm from entering that market.

High capital cost
EOS(bulk buying, Bakeries)
Legalisation
Predatory pricing (Selling lower than cost price for time period to remove competition)
Government regulation

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15
Q

What is new entry threat in Porters five forces ?

A

New business enters the market and is a threat to the current market.
Larger the business more threat.

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16
Q

What is changes in buying power in consumers in porters five forces?

A

Monopsony (Single buyer in the market)(Tesco selling Farmers tomato s at a price)

17
Q

What is changes in selling power in suppliers in Porters five forces?

A

Sell near exclusive access and has near no substitute goods(Sneakers)

18
Q

What is competitive rivalry in Porters five forces?

A

Monopoly(1 dominant )
Duopoly (2 dominant )
Oligopoly (small amount of dominant markets)
Monopolistic competition(many firms not much market control)
Perfect competition(Lots of firms no market control)(Homogenous)

Dominant markets

Reduce choices
Increase prices
Inefficient without competition
Barriers to entry

Gain EOS
Invest heavily in new technology

19
Q

What is substitutes in Porters five forces ?

A

This occurs when businesses within an industry are faced with the threat of a similar product from another industry.

Affect prices able to charge
Cost of product and usefulness
Price/Performance ratio
Low price / high performance (deadly threat )

20
Q

What is IGOR Ansoff Matrix ? 4 components

A

Diversification
Market penetration
Market development
New product development

21
Q

Market penetration meaning ?

A

Selling an existing Product in an existing market

Low risk= Low reward
Obtain market share (From comp)
Extension strategies
Changes to the market mix

Competitor reactions
Saturated market

22
Q

Market development meaning ?

A

Selling an existing product in a new market

International Trade
Promotional tactics(Demographic)
New distribution channel(E-comm)

Product may not be accepted
(Undemanded)
Business Ineducated (Information gaps)
Alienation of current consumers
(Ditching current consumers)

23
Q

Product development meaning?

A

New product in a existing market

Launch upgraded versions of existing products(iPhones)
New product innovation(Vision Pro)
Introduce complementary products(iPhone + case)

Damage to brand
Shorten product life cycle of existing products(New products more demand)

24
Q

Diversification meaning?

A

New products in a new market

High risk= High reward
R&D
Acquisitions of markets(Cadbury,KRaft)

Heavy investment
Cultural differences
Management differences

Business component 2 (15 decks)

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